Bitcoin's price has been hovering within a narrow range of approximately $8,200 over the past week, despite the growing anticipation of it reaching the elusive $100,000 mark. Since its sharp decline from the all-time high of $99,655 on November 22, Bitcoin has been caught between resistance at $99,700 and support at $91,600. Let’s dive into why Bitcoin’s price has remained stagnant and what factors are keeping it in this consolidation phase.

1. Stalling Demand for Bitcoin Investment Products 🚫📉
One of the primary reasons for Bitcoin’s stagnant price is the decline in demand for investment products tied to BTC. This was particularly evident during the Thanksgiving holiday period in the United States, which led to a decrease in capital inflows into Bitcoin.
Recent data shows that Bitcoin investment products experienced outflows amounting to $457 million in the week ending November 29. Additionally, the balance of Bitcoin ETFs remained relatively unchanged since November 25, despite fluctuations in inflows and outflows in November. This lack of movement suggests a pause in institutional or large-scale investor interest in Bitcoin, which plays a critical role in driving its price.
Another indicator is the Net Realized Profit, which measures changes in Bitcoin’s on-chain capital flows. On November 21, the Net Realized Profit peaked at $1.08 billion but has since dropped and plateaued at approximately $33 million. This suggests that while some investors made profits, the overall profit-making activity has slowed down, creating a balance of market forces.

2. Bitcoin Trapped Between Key Trendlines 📊🔻
Bitcoin's price has been struggling to break free from key resistance and support levels, with both the 50-period simple moving average (SMA) and the 100-period SMA playing important roles in determining its trajectory. On December 2, Bitcoin’s price fell below the 50-period SMA, which was at $95,821. However, it found support at the 100 SMA, which was at $95,051.
This indicates that Bitcoin is trapped within a consolidation pattern. To break free, Bitcoin’s price would need to push above the $98,200 resistance. Currently, it’s struggling to break through a stiff congestion area between $96,422 and $97,111, where more than 733,760 addresses bought approximately 597,620 BTC.

3. Buyer Congestion Zone Providing Support 🛑💪
On the downside, Bitcoin’s price is finding support within a critical buyer congestion zone. The 100 SMA at $95,051 coincides with a zone between $92,876 and $95,736, where 688,690 addresses acquired around 348,720 BTC. This zone is currently helping to stabilize the price, preventing a further downturn. As a result, Bitcoin is essentially in a tug-of-war between buyers and sellers, leading to the current price consolidation.
Conclusion 💡🚀
Bitcoin’s current price stagnation can be attributed to a combination of decreased demand for investment products, technical resistance, and support levels in the market. The balance between realized profits and losses, coupled with institutional inactivity, has created a market equilibrium where neither the bulls nor the bears have gained full control. As Bitcoin continues to consolidate, traders and investors alike will need to closely monitor key levels to determine when the next breakout may occur.
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